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S&P Lifted Green For May On Lowest Volume Day Of 2014

Tyler Durden's picture




 

Equity volumes were abysmal today... (NYSE lowest in 2014) which means only one thing... a VIX-driven levitation. Bonds sold off at the long-end (30Y +4bps) but the short-end remained bid (5Y -1bp) but did get 5s30s back to 5 week steeps. USDJPY bounced off  its 200DMA (~101.25) but did not really support stocks higher. Credit markets did not buy the exuberance in stocks either. What today's ramp appears to have been was a gap-fill for VIX from Friday's dislocation on a day with no macro data to upset the algo stop-run procession. Gold and silver (along with all commodities) overnight but once the US day session opened, the selling began and PMs closed unch. The USD ended down 0.1% led by modest EUR strength (despite ECB jawboning) and AUD weakness (rumors of downgrades). "Most shorted" stocks rallied almost 3% from Friday's lows (when S&P bounced off its 50DMA) as once again a squeeze manufactures broad index pick-ups.

 

No Volume...

 

 

Take a look at the lower pane and see if you guess (given that is relative volume) which is the up-day in stocks and which is the down day...

 

Squeeeeeeze.....

 

and high-beta led the way - durr -

 

Which lifted the S&P 500 into the green for May...

 

VIX played fill-the-gap from Friday and lifted stocks with it...

 

But credit was not playing along at all

 

USDJPY wasn't buying it... (or its beta to stocks was cranked up 11 on Spinal Tap's amplifier)

 

 

The S&P 500 cash caight this bid off the 50DMA once again... but it is not well supported (by volume, credit, bonds, or JPY)...

 

Bonds sold off today after early strength - as Europe closed, bonds started to sell off...

 

Gold and silver pumped into the US open and then dumped to unch...

 

FX markets were quiet aside from AUD as chatter about S&P downgrade comments sparked some weakness...

 

Charts: Bloomberg

Bonus Chart: Treasury Futures shorts have been unwound in general...

 

Bonus Bonus Chart: Wondering why credit markets are starting to get nervous...

 

 

Bonus Bonus Bonus Chart: Peak Complacency according to SocGen's Andrew Lapthorne...

 

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Mon, 05/19/2014 - 16:07 | 4774863 Bernoulli
Bernoulli's picture

No wonder volumes were low.

Even algos get bored at one point...

Mon, 05/19/2014 - 16:35 | 4774945 Manthong
Manthong's picture

Wake me when the snp goes below the 400 DMA and is at 32ft/ps/ps.

Mon, 05/19/2014 - 16:11 | 4774866 RaceToTheBottom
RaceToTheBottom's picture

If the S&P rises on no volume, did it really rise?

 

OK, what if it was in a forest?

Mon, 05/19/2014 - 16:22 | 4774904 aVileRat
aVileRat's picture

I wonder what the world will think of the DOJ going after CSFB's global assets for fixing the Libor & tax evasion.

Will EU/Swiss stand for the DoJ crossing lines to go after the parent?

 

Will be interesting to see what this does to the overnight financials (and the Tuesday bump up).

 

Edit: Damn, too slow on this insight; Bloomberg is making this their lead story after-hours.

Whelp.

 

 

Mon, 05/19/2014 - 16:47 | 4774979 Manthong
Manthong's picture

..they need to pick on a foreigner to distract from the allowed domestic crimes.

but no worries.. it is all in the (roth shill) family.

Mon, 05/19/2014 - 16:10 | 4774872 fonzannoon
fonzannoon's picture

Anyone else notice the discrepency betwen yahoo finance and other sites when showing volume traded in stocks today?

Other than that, then Yen spent all day selling off, PM"s spent all day selling off, the nasdaq ripped higher and the 10yr started climbing back up. I'd say that was central planning nirvana,

Mon, 05/19/2014 - 16:13 | 4774883 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

what was it indicating? I've often found yahoo finance a bit buggy. 

Mon, 05/19/2014 - 16:17 | 4774892 fonzannoon
fonzannoon's picture

many of the stocks I follow has yahoo showing them trading in fractions of their usual volume. But on cnbc it has somewhat more normal volume. I am guessing cnbc is right (never thought i'd say that. ever).

 

They both have spy trading at half the usual vol though. wow. just shut the markets off already.

Mon, 05/19/2014 - 16:22 | 4774915 Winston Churchill
Winston Churchill's picture

Just as well nobody wants to sell.

Mon, 05/19/2014 - 16:25 | 4774926 NoDebt
NoDebt's picture

Voume in perspective:  Back in the early 90s a "big" day was 1 Billion shares traded.

4 billion shares traded is a big day now.  70% of all trading is HFT.  Which if you back it out, leaves you right around 1 billion shares traded.

Funny how that works.

Mon, 05/19/2014 - 16:30 | 4774936 aVileRat
aVileRat's picture

Yahoo runs delayed and does not show all feeds only what the board or OMX flashes. Same as Google finance (which was made by the old Yahoo Finance team). CNBC is usually correct, as is bloomberg since those runs off the collected quote.

Volume discrepancy is sometimes due to how much is traded over counter/dark's vs. what is shown on main board. Prices are always flashed so not a really big deal (unless you are trading on volume, which I must ask: WHY?!?!? as a retail account).

 

Mon, 05/19/2014 - 16:27 | 4774923 Squid Viscous
Squid Viscous's picture

I did notice that on a couple stocks, not sure why - maybe my bad for still using yahoo finance... or maybe it's the ass clowns on "breakout" that keep me coming back, ex-con Blodgett and "car people" Macke, etc.

Mon, 05/19/2014 - 16:31 | 4774937 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

 I finally lost interest in Blodgett and Macke

Mon, 05/19/2014 - 16:11 | 4774877 Cattender
Cattender's picture

one more time: it's a RECOVERY!!!!!! WOOOHOOOO!!!!!!

Mon, 05/19/2014 - 16:13 | 4774878 Squid Viscous
Squid Viscous's picture

Another glorious day in the Trans, surely this portends a dymamic recovery in second half GDP?

Mon, 05/19/2014 - 16:12 | 4774880 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

I've never seen such low volume at a close on the NASDAQ e-mini 100---I had to check the clock twice to make sure I was actually looking at 15:58. The only time that volume ticked up was the last minute, and of course it was a red line down. low volume melt up after hours (of course), continuing where the last minute left off. 

Mon, 05/19/2014 - 16:13 | 4774884 fonzannoon
fonzannoon's picture

take a look at some of the stocks. Look at Mckesson for example. Look at the volume on yahoo finance and then on cnbc.com. wtf?

Mon, 05/19/2014 - 16:16 | 4774891 Bernoulli
Bernoulli's picture

it's all so rigged, they can't keep up with matching all the different databases...

Is it just me or does it really feel a bit like we are approaching the edge of the cliff?

Mon, 05/19/2014 - 17:05 | 4775030 gatorengineer
gatorengineer's picture

The divergence between wallstreet and mainstreet, certainly is at an all time high....  But since we are a million miles away from any metric, no telling how far they can push it....  5.x unemployment, 2.4ish 10 yr, is where we are clearly headed....  The "savior" of the market may be the EU printing the Euro down to 1.30.  Dont know what the Japs can do to hold 101.5 though.

Mon, 05/19/2014 - 16:45 | 4774978 Hindenburg...Oh Man
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I checked MCK on yahoo finance vs. my Thinkorswim platoform, and they pretty much matched up, although there did seem to be points at which Yahoo finance showed lower volume maybe. 

 

I did notice someone dump some e-mini NQ futures at 1614, in an unusually large amount (based on a low volume day)--usually you only see movement like that on earnings releases that impact the overall market. 

Mon, 05/19/2014 - 16:13 | 4774885 TheRideNeverEnds
TheRideNeverEnds's picture

Buy in May and go away.

Mon, 05/19/2014 - 16:19 | 4774901 pound the vix
pound the vix's picture

Buy Every day and double your pay.

Mon, 05/19/2014 - 16:38 | 4774958 Callz d Ballz
Callz d Ballz's picture

I just may go down by the bay, what do you say?

 

 

 

 

Happy Gilmore

Mon, 05/19/2014 - 16:22 | 4774912 Squid Viscous
Squid Viscous's picture

thought you promised to go away in March? wtf- can't stick to a deal?

Mon, 05/19/2014 - 16:33 | 4774889 Bdelande
Bdelande's picture

The stock market has been reduced to nothing more than a promotional tool, central to justifying the existence of the parasitical financial industry and banking cabal ............. 
 
The giant squid is dealing in underwater subterfuge, spewing colossal clouds of black ink so as to camouflage and disguise its grossly predatory activities.


Only a super sized solid silver bullet can extinguish the terrifically tenacious tentacled traitor!
Mon, 05/19/2014 - 16:15 | 4774890 101 years and c...
101 years and counting's picture

the real reason stocks are up today is because tomorrow is tuesday.  

Mon, 05/19/2014 - 16:22 | 4774896 Squid Viscous
Squid Viscous's picture

Now they are blaming the predicted increase in Cannon Fodder Weekend traffic on the "economic recovery" and job market improvement... just heard on CBS-NY radio...  ??!?

Mon, 05/19/2014 - 16:18 | 4774898 AccreditedEYE
AccreditedEYE's picture

Just buy. The Most Shorted will always act like a bunch of petrified little girls and rush to cover. Till they find some courage, even a no-volume market can steam roll them.

Mon, 05/19/2014 - 16:21 | 4774911 GS-DickinDaMuppets
GS-DickinDaMuppets's picture

With all this good news I can hardly wait until I get my next update from The Dry Bulk Shipping  Sector.  I bet it will be a barn burner .....what do you mean "you've never seen a barn burn DOWN, - or UP?".

Seems like there is a smart ass in every crowd, and I am still wating to BTFD, that is assuming there will be another DIP! This market can only go UP....until it doesn't.

Mon, 05/19/2014 - 16:26 | 4774927 Winston Churchill
Winston Churchill's picture

Just rename the NYSE the Harare bourse, and be done with it.

Mon, 05/19/2014 - 16:23 | 4774916 yogibear
yogibear's picture

Volume comes down to William Dudley's trading desk at the NY Federal Reserve.

The Federal Reserve was buying all those US Treasuries Russia dumped last week from their Belgium account.

Mon, 05/19/2014 - 16:27 | 4774931 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Buy on monday/tuesday sell on weds/thurs...take profits into weekend for mind altering experiences

Mon, 05/19/2014 - 16:34 | 4774947 madbraz
madbraz's picture

The 30 year treasury bond started sliding at 1PM - not surprisingly the time when the NY FED $200 billion reverse repo took place - a daily occurrence.    

Good old NY FED giving collateral to primary dealers, who in turn short treasuries.  Our Central bank aiding banks in betting against bonds of our own country.  

 

The only country in the world where this is allowed to happen.

Mon, 05/19/2014 - 16:45 | 4774976 jtz5
jtz5's picture

So the S&P only has a correlation to JPY when JPY is going higher, but when JPY is going lower, the S&P correlates with something else that is going higher to make the S&P go higher.

Got it...nothing funny about that.

Mon, 05/19/2014 - 16:56 | 4775012 PaperBear
PaperBear's picture

Contrast this with HUGE volumes on the silver smackdowns.

Mon, 05/19/2014 - 17:01 | 4775022 The worst trader
The worst trader's picture

The last chart looks like the NYC skyline. So beautiful!

Mon, 05/19/2014 - 17:06 | 4775032 Al Huxley
Al Huxley's picture

Credit never seems to play along - what a fucking jerk - always ruining the party, worrying about this, that and the other thing - 'who's gonna pay for all this?, look how late its getting, you're spilling on the carpet'.  Whiney fucking spoilsport.

Mon, 05/19/2014 - 17:12 | 4775045 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

What is the context of that load default rate chart?

Mon, 05/19/2014 - 18:15 | 4775196 Muppet
Muppet's picture

loan not load.... LMAO

Mon, 05/19/2014 - 17:17 | 4775051 BeetleBailey
BeetleBailey's picture

The NEVER ENDING SHOW OF SHIT.....

MUPPET MONDAY VERSION....

COMING SOON...TO A DUMPSTER NEAR YOU.

Mon, 05/19/2014 - 18:23 | 4775234 bentaxle
bentaxle's picture

I get it. Monday is the new Tuesday. Do I win?

Mon, 05/19/2014 - 20:13 | 4775551 g'kar
g'kar's picture

Good news, the SEC and Congress are finally fed up with this phony market stuff and are launching a serious investigation as to why their portfolios are only rising 25% per year.

 

www.myportfolioisntrisingfastenoughthroughcorruption.com

Mon, 05/19/2014 - 21:35 | 4775812 ms8172
ms8172's picture

I can't wait to see this fuckin thing burn down.....I'm sorry!

Tue, 05/20/2014 - 08:15 | 4776712 AdvancingTime
AdvancingTime's picture

Most likely in time, but you may have to wait a little longer. Modern Monetary Theory often referred to as MMT to its many believers removes much of the risk ahead and guarantees that we will always be able to muddle forward. MMT also known as neochartalism is a economic theory that details the procedures and consequences of using government-issued tokens and our current units of fiat money.  Newly acquired tools like derivatives and currency swaps  allow us to print and  manipulate away problems.

While reading an article about the growth of debt in China's non-financial sector I was forced to reflect on how debt is effected by the interest rates. In Europe the ECB had to step in to halt the economic collapse of Spain, Italy and several other countries that were on the brink. What you pay in interest on debt does matter accept in the manipulated land of MMT. Have we been lulled into complacency by the extraordinary actions taken by central banks and governments over the last six years? This is a key question we must face. More on this subject in the article below.

http://brucewilds.blogspot.com/2014/01/have-we-been-lulled-into-complace...

 

Tue, 05/20/2014 - 08:16 | 4776687 AdvancingTime
AdvancingTime's picture

Over the years we have witnessed the type of market reversal the big banks supported by the Fed can generate with a concerted effort to buy S&P 500 index futures at crucial support points late in the day. This has proved more than enough to turn the markets from red to green in the blink of an eye. 

The market continues to remain distorted. Even a bad report on job creation is twisted and spun as to mean more Federal Reserve support for easy money policies and a reason to rally the market. It seems no suggestion of weakness no matter how subtle can exist because it may begin to unravel the already fragile consumer confidence. More on this subject in the article below.

http://brucewilds.blogspot.com/2014/04/bears-have-little-reason-for-conf...

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